Speeches / Presentations

2019 H2: A new beginning for the Greek economy

2019 H2:A new beginning for the Greek economy
Gikas A. Hardouvelis
June 19, 2019


The Greek crisis had two phases, the necessary Phase- I and the unnecessary Phase – II

  • Many imbalances were cured in Phase I (Fiscal deficits eliminated,current account deficits shrank, ULC competitiveness restored)
  • Yet Phase II prolonged the stagnation, with democratic institutions and the financial sector under threat and the population overlevered and in despair for the future

A jump–start is now required: What are the major challenges ahead?

  • Reverse the current disinvestment, which destroys potential growth
  • Correct the fiscal mix with incentives for work and creativity
  • Restore quality competitiveness with privatizations, public sector reforms, investment in IT & innovation, educational reform
  • Help cure the financial sector with a drastic NPE reduction
  • Address the population growth & improve social cohesiveness

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